Q&B’s publication featured in “Free Money For Small Business? Beware Legal Risks Of Paycheck Protection Loan Program Until More Guidance Issued”Forbes 04/06/20
On March 27, 2020 the CARES Act was signed into law which allows small businesses (up to 500 employees) to apply for the Paycheck Protection Program if they are under financial stress because of the COVID-19 pandemic. The Paycheck Protection Program will give cover up to eight weeks of payroll allowing the program to reduce the growth of unemployment and enable companies to rebound quickly after the pandemic is under control. However, professionals advise small companies to beware of the legal risks involved in this program.
Below is an excerpt:
“The PPP application requires the applicant to make a number of certifications, including: ‘Current economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant.’ The SBA has not provided any definition or color about the nature or extent of the required impact to operations that would make the loan request ‘necessary to support ongoing operations,’ which has both applicants and lenders skittish about making or accepting the certifications.”